- Magic Labs has partnered with Polygon Labs to create a cross-chain smart wallet
- Known as Passport, the wallet is designed to ease interaction with Polygon’s AggLayer
- Magic Labs and Polygon want to use the wallet to reduce liquidity fragmentation
Magic Labs and Polygon Labs have partnered to create a cross-chain wallet that eases the movement of funds between AggLayer-linked networks. Known as Passport, the wallet will also reduce liquidity fragmentation for blockchains interacting with the settlement layer. Powered by the Newton testnet, the wallet solution also aims to standardize the movement of funds between networks for a “seamless experience,” which may spur the growth of DeFi and web3 on multiple chains.
Passport Uses Swaps Instead of Bridges
Magic Labs believes that web3 users want a wallet that acts as a central point for all their blockchain-based interactions, something that’s lacking in the current breed of blockchain and web3 wallets.
Announcing Passport, the first chain-abstracted smart wallet, now in private beta.
Sign up for the waitlist to be the one of the first to build with Passport: https://t.co/Ln34vpRMl9 🧵 pic.twitter.com/LAUeyyUavW
— Magic (@magic_labs) November 7, 2024
The wallet employs crosschain swaps instead of bridging further reducing the complexity of moving funds between blockchains. Passport provides web2-like authentication and supports “instant cross-chain transactions.”
According to an announcement, Newton “can be thought of as the HTML or HTTP analog” capable of enhancing the experience of web3 users and developers. Polygon added that the collaboration between the two firms is part of its commitment to making web3 “distinguishable from the convenience of web2.”
Polygon noted that those using the testnet will be able to create chain-abstracted wallets, receive gas subsidies, and enjoy unified liquidity.
More Entites Solving Cross-Chain Interoperability Issues
Magic Labs and Polygon Labs aren’t the only ones breaking blockchain silos to improve the movement of value across chains. DeFi protocol 1Inch, for example, recently released a whitepaper describing a solution to address cross-chain interoperability issues.
Apart from creating solutions to ease the movement of funds across blockchains, web3 projects like NFT marketplaces are supporting more chains to enhance collectors’ experience.
With the launch of a cross-chain smart wallet on Poygon’s AggLayer, it’s to be seen whether the wallet will spur the adoption of DeFi and web3 across the larger Ethereum ecosystem.
